Regional budgets will have to find additional sources to finance current expenditure

In order to preserve budget surplus, the state budget is envisaged to be reduced by 7-8% in 2016. The state investment programme will be subjected to considerable reductions; the volume of intergovernmental transfers will be reduced, too. Some regional budget revenues for up to 70% depend on gratuitous receipts from higher budgets. On the regional level, secondary costs are likely to be reduced, most profitable regional enterprises are likely to bear an additional financial burden, including non-state enterprises. Regional protectionism may enhance in order to secure funds for local budgets, additional local taxes may be introduced, or existing taxes may be adjusted upwards. When supplying goods and services within the state procurement programmes, the settlement terms may be extended, and volume of overdue payments may increase, leading to a further deterioration with payments in the economy.